Red Sky raises $4.5m for exploration

West Perth-based oil and gas explorer Red Sky Energy has raised $4.5 million, with strong interest from institutional investors.

The company placed 125 million new shares at 3.6 cents each to clients of Melbourne Capital.

Shares in Red Sky Energy, which were previously in a trading halt, closed down 0.4c to 4.1c today.

"We are very pleased with the level of interest for this placement, especially from institutions. This now puts Red Sky in a strong position to fund near term drilling and further explore its extensive acreage throughout 2010," managing director Rohan Gillespie said.

It is the company's second capital raising in as many months with Red Sky raising $4 million in September for its acquisition of Cydonia Resources, which holds two coal seam gas projects in Queensland.